The Global Business Environment
This term describes the increasing interdependence of the world’s economies.
What is globalization?
This is the difference between a country’s exports and imports.
What is balance of trade?
This is a tax placed on imported goods.
What is a tariff?
This agreement reduces trade barriers among participating countries.
What is a trade agreement?
This occurs when one country’s currency is exchanged for another at a determined rate.
What is foreign exchange (or exchange rate)?
This strategy involves producing goods in another country to lower costs.
What is outsourcing (or offshoring)?
This term refers to limits placed on the quantity of goods that can be imported.
What is a quota?
This occurs when a company directly invests in facilities in another country.
What is Foreign Direct Investment (FDI)?
This theory suggests countries should specialize in producing goods they can make more efficiently than others.
What is comparative advantage?